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How to Measure Success in Your Business

You can measure the success of your business in many ways. Check to see whether you are achieving your strategic goals and objectives. If you want your business to be successful, everyone must take responsibility for making it happen. It's a good idea to let everyone know what you are trying to accomplish and why their contribution is important.

Mail surveys to your customers or have them complete online surveys. Surveys will give you an idea of whether they're satisfied. You have to know your customers' needs and what they think of your products, service and management. This gives you an opportunity to increase customer satisfaction.

Review your customer base over a period of six months. If it's growing on a regular basis that's a good indication of success. Chances are you are getting customers from a competitor because you offer a better product or service. Often, it's by word of mouth that businesses get new customers who are just entering the market. Check to see how many new customers you have versus the number of customers who have stopped doing business with you. If you are retaining a large portion of your customers, this is also an indication of success.

Meet with your employees or have them fill out a survey anonymously to determine their level of job satisfaction. A successful business wants satisfied employees. When your employees are satisfied they are more committed, enthusiastic, and passionate about your business. Satisfied and happy employees are more productive and they miss less work, which ultimately translates into a successful business. Reward your employees for their hard work with incentives and bonuses. Be sure to say thanks for a job well done.

Look at the profitability of the business. Review the income statement, the balance sheet and the cash-flow statement. One of the best ways to determine success is by evaluating the amount of money that is coming into your business in terms of sales and revenue. Profitability is a key determinant of success. Look at your revenue and see how much goes toward paying costs and expenses. A profitable business will have cash left over after every expense has been paid. The remaining cash can be used for a number of purposes including expansion, new equipment or paying down debt.

A successful business is always looking for new products and services for its customers. Sometimes it's just a matter of improving on products that are already offered. When you can introduce new products and services, that indicates success and growth.

Difficulty: Moderately Easy

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